US fugitive pays record N$10m bail

A SIX-DAY stint in the Windhoek Central Prison ended for Israeli-born high-tech industry millionaire Jacob ‘Kobi’ Alexander yesterday.

Alexander, who was arrested at his house in Windhoek at the request of the United States government on Wednesday last week, posted a record N$10 million – the highest bail amount yet set in Namibia – to be released from custody yesterday. Magistrate Uaatjo Uanivi ruled that Alexander could be granted bail while a formal request from the US government for his extradition was awaited by Namibia.The Magistrate ruled that Alexander (54) could be released if he paid bail of N$10 million.He further ordered Alexander to surrender his Israeli passport to a Namibian Police officer attached to the local branch of Interpol, Inspector Rudolph Mbumba, who was involved in the arrest of Alexander at the Windhoek Country Club Estate last week, and also ordered Alexander to report to Mbumba each Monday and Friday between 08h00 and 20h00.The Magistrate told Alexander that he would not be allowed to leave the Windhoek district without Mbumba’s permission.He warned him that if he broke any of the set bail conditions, his bail would be cancelled and he would be rearrested and kept in custody.Alexander’s wife, Hana Alexander, was present to hear that her husband would regain his freedom after spending six nights in Namibia’s largest prison – an accommodation establishment that is a far cry from the sort of standards that Alexander would have become accustomed to at the upmarket house that he bought for N$3,8 million after his arrival in Namibia in late July.Alexander and his wife kissed and embraced immediately after the court adjourned following the bail ruling.They declined giving comment to journalists – from Namibia, Israel and also from South Africa – present in court.As Alexander left the court building in the company of one of his team of lawyers, Rudi Cohrssen, about two hours after the bail ruling, his only comment was that the first thing he was going to do when he got home would be to hug his children.Alexander, who was born in Israel but has been living and working in New York for about 20 years, was until May this year the Chief Executive Officer of Comverse Technology Inc, a Nasdaq-listed company that he helped found and steered to become a leading maker of telecommunications software.While he was in charge of the company, though, the US authorities charge, he became involved in an allegedly fraudulent scheme in which he helped manipulate the sale of shares in the company in order to pocket extra earnings of tens of millions of US dollars.Between January 1998 and March 2006, it is charged in an indictment filed against Alexander in a New York court, Alexander’s own wealth ballooned through him making a profit of US$138 million (about N$1,05 billion) through his selling of shares in Comverse.Out of this profit, however, about US$6,4 million (N$49,9 million) was ill-gotten fruits from the illegal manipulating of the timing and pricing of shares that he received in the company, it is claimed.In his bail ruling, Magistrate Uanivi said the court had heard evidence that Alexander had transferred a substantial amount of money from Israel to Namibia after he came to the country in late July.His family – his wife and three children – had joined him in Namibia, and his children had been enrolled in a school in Windhoek, the court heard during the bail application.It also heard that Alexander was granted a two-year work permit for Namibia on August 29, and that the Chairman of the Immigration Selection Board, Samuel /Gôagoseb, at the same time informed Alexander in a letter that his application for permanent residence in Namibia would be considered, provided that he submitted an investment plan for the transfer of amount of N$300 million over the same period.According to an affidavit by Alexander that was filed with the court on Monday, he had already transferred N$120 million to Namibia, and had invested N$11 million in various business ventures since he took up residence in the country – mostly focusing on property and housing projects at Walvis Bay, but also, curiously, including a panel-beating business, in which he stated he has invested N$5,9 million.The Magistrate noted that the court had heard that Alexander had embarked on various business ventures in Namibia, and that he had bought a house in the country at a price of N$3,8 million.Claims that Alexander had manipulated the American criminal justice system in an effort to prevent being prosecuted in the US, or that he was likely to interfere with the process of justice if he was released on bail, had not been substantiated by evidence given under oath during the bail application, the Magistrate added.He commented that the court had also not been provided with evidence supporting the prosecution’s argument that there was a likelihood that Alexander would flee from Namibia if he was released on bail.Alexander’s arrest on Wednesday last week was requested by the US Embassy in Namibia, which asked for him to be detained while the US Government prepared a request to the Namibian Government for Alexander’s extradition to the US.Such a formal extradition request has to be filed within 30 days after arrest, meaning that the extradition request will have to be filed by October 27.Herman Oosthuizen, Rudi Cohrssen and Richard Metcalfe represented Alexander at the bail hearing.Orben Sibeya appeared for the State.Magistrate Uaatjo Uanivi ruled that Alexander could be granted bail while a formal request from the US government for his extradition was awaited by Namibia.The Magistrate ruled that Alexander (54) could be released if he paid bail of N$10 million.He further ordered Alexander to surrender his Israeli passport to a Namibian Police officer attached to the local branch of Interpol, Inspector Rudolph Mbumba, who was involved in the arrest of Alexander at the Windhoek Country Club Estate last week, and also ordered Alexander to report to Mbumba each Monday and Friday between 08h00 and 20h00.The Magistrate told Alexander that he would not be allowed to leave the Windhoek district without Mbumba’s permission. He warned him that if he broke any of the set bail conditions, his bail would be cancelled and he would be rearrested and kept in custody.Alexander’s wife, Hana Alexander, was present to hear that her husband would regain his freedom after spending six nights in Namibia’s largest prison – an accommodation establishment that is a far cry from the sort of standards that Alexander would have become accustomed to at the upmarket house that he bought for N$3,8 million after his arrival in Namibia in late July.Alexander and his wife kissed and embraced immediately after the court adjourned following the bail ruling.They declined giving comment to journalists – from Namibia, Israel and also from South Africa – present in court.As Alexander left the court building in the company of one of his team of lawyers, Rudi Cohrssen, about two hours after the bail ruling, his only comment was that the first thing he was going to do when he got home would be to hug his children.Alexander, who was born in Israel but has been living and working in New York for about 20 years, was until May this year the Chief Executive Officer of Comverse Technology Inc, a Nasdaq-listed company that he helped found and steered to become a leading maker of telecommunications software.While he was in charge of the company, though, the US authorities charge, he became involved in an allegedly fraudulent scheme in which he helped manipulate the sale of shares in the company in order to pocket extra earnings of tens of millions of US dollars.Between January 1998 and March 2006, it is charged in an indictment filed against Alexander in a New York court, Alexander’s own wealth ballooned through him making a profit of US$138 million (about N$1,05 billion) through his selling of shares in Comverse.Out of this profit, however, about US$6,4 million (N$49,9 million) was ill-gotten fruits from the illegal manipulating of the timing and pricing of shares that he received in the company, it is claimed.In his bail ruling, Magistrate Uanivi said the court had heard evidence that Alexander had transferred a substantial amount of money from Israel to Namibia after he came to the country in late July.His family – his wife and three children – had joined him in Namibia, and his children had been enrolled in a school in Windhoek, the court heard during the bail application.It also heard that Alexander was granted a two-year work permit for Namibia on August 29, and that the Chairman of the Immigration Selection Board, Samuel /Gôagoseb, at the same time informed Alexander in a letter that his application for permanent residence in Namibia would be considered, provided that he submitted an investment plan for the transfer of amount of N$300 million over the same period.According to an affidavit by Alexander that was filed with the court on Monday, he had already transferred N$120 million to Namibia, and had invested N$11 million in various business ventures since he took up residence in the country – mostly focusing on property and housing projects at Walvis Bay, but also, curiously, including a panel-beating business, in which he stated he has invested N$5,9 million.The Magistrate noted that the court had heard that Alexander had embarked on various business ventures in Namibia, and that he had bought a house in the country at a price of N$3,8 million.Claims that Alexander had manipulated the American criminal justice system in an effort to prevent being prosecuted in the US, or that he was likely to interfere with the process of justice if he was released on bail, had not been substantiated by evidence given under oath during the bail application, the Magistrate added.He commented that the court had also not been provided with evidence supporting the prosecution’s argument that there was a likelihood that Alexander would flee from Namibia if he was released on bail.Alexander’s arrest on Wednesday last week was requested by the US Embassy in Namibia, which asked for him to be detained while the US Government prepared a request to the Namibian Government for Alexander’s extradition to the US.Such a formal extradition request has to be filed within 30 days after arrest, meaning that the extradition request will have to be filed by October 27.Herman Oosthuizen, Rudi Cohrssen and Richard Metcalfe represented Alexander at the bail hearing.Orben Sibeya appeared for the State.